Dolphin Trust loans money from qualifying individuals in the United Kingdom in the form of loan notes issued by a german property SPV which is usually a group company or subsidiary of Dolphin Trust. The terms of the loan notes are set out in the loan note instrument, which include fixed returns of interest and capital. The loan note instrument and associated documents have been drafted by UK lawyers with experience in banking, finance and financial services and scrutinised by a variety of SIPP Providers.
Dolphin Trust uses the loan money to fund its word with German Listed Buildings. The Company carefully sources Listed Buildings that require renovation. This is because, in Germany, the German Government offer a unique tax break to encourage German citizens to purchase renovated German Listed Buildings.
The apartments within the German Listen Buildings are sold off-plan (before renovation work commences) through a well established network of German sales agents. Payments are released by the buyers, usually through German Banks, on a phased basis. This enables the agreed interest and subsequently capital repayments to be made to the lenders who provided the initial loan funds to Dolphin Trust at the outset.